Personal computer orders are "falling off a cliff," according to J.P.Morgan analyst Christopher Danely, who issued a research report downgrading his revenue and earnings estimates for Intel, the world's largest chip maker. Meanwhile, Robert W. Baird & Co. analyst Tristan Gerra offered a similarly glum assessment of PC orders.

"Our checks point to a sharp deceleration in PC order trends continuing into August, after a below-expectation July month," Gerra wrote in a note to clients. "Hopes of a meaningful recovery for the September month are less and less likely, in our view, leading to a likely below-expectation [third quarter].

Intel Downgraded

Gerra downgraded Intel shares to Neutral from Outperform, reducing his price target to $22 from $30.

The reports are an ominous sign that the recent rise in consumer and enterprise technology spending may be slowing down, a worrisome development for an economy already sputtering. Analysts have been hoping that a pickup in PC spending would help drive economic growth, but reports of slowing PC orders are sure to put a drag on the recovery.

"Our checks in the Taiwan PC food chain indicate order rates from the PC end market deteriorated sharply during the last part of July," J.P.Morgan analyst Christopher Danely wrote in a note to clients. "Our checks indicate HP and Acer cut orders to the notebook supply chain, while Acer and Lenovo cut orders to the semiconductor food chain."

"Weakening Demand"

"Although there is a possibility order rates could recover, we view this as unlikely given increased inventory in the supply chain and weakening demand in the US and Europe and slowing demand in China," Danely added. "We continue to be cautious on the space due to the large amount of capacity coming on line combined with softening demand."

Danely lowered his calendar year revenue and earnings-per-share estimates for Intel from $44.4 billion to $44.1 billion and $2.01 to $1.95 to reflect a "below-normal seasonal quarter." He maintained his $19 price target on Intel with a Neutral call on the stock.

"With roughly 94% of its revenues derived from the overall computing end market, Intel is highly exposed to the prevailing PC demand headwinds in Asia," Danely noted.

Ian't it possible that IPad and Kindle and NetBook orders and...and... are taking the chip production?Isn't it possible that Convergence AAA is re-directing device demand to Mobile-enabled devices?It may be true that desktop, even some laptop demand is leveling off or falling, but not for long. Demand for the overall universe of Convergence AAA (AnyTHing, AnyTIme, AnyWhere)devices is still growing rapidly.

Could it be lack of experience in the Oval officeLOL. this guy doesn't have a clue to what is going on, so he stays away most of the time. I don't blame him for that at all. He has blamed everyone for the last 25 yrs for his problems, Now he must go back even more. What a joke he is, but he has a plan, and the USA will never be the same!

Just exchanged emails with HP about the purchase of a new printer that use the series 94 black & series 97 color cartridges that are used in my printer in my home office. The answer I got was not surprising but confirmed why I will no longer support their products, nothing in current production works with either of the cartridges I use requiring the need for multiple series which is simply absurd. Why would anyone be expected to be suckered in to a business model like that. Absolutely unbelieveable

Obviously, smart phones, iTouches, iPads and e-readers are putting a dent in pc sales. Who wants to buy a computer when their pocket-sized phone will allow them to do what they needed a pc for in the past?

The problem is that both Dems and Republ are to blame. They blame each other instead of working together to fix the problem. I am an Obama supporter but he is wrong. I hated George Bush because he was wrong. Lets stop fighting and fix the "dang" problem. The problem is that the economy has changed form an industrial economy to an information/internet economy. Those industrial jobs will not come back they were outsourced or replaced by technology. Your future job will involve the internet. The young people know it. Its the old fools who fight each other because they have no solutions. I have solutions, but now is not the time or space to discuss them. I am developing a new college course to teach this. Email me (os3@aol.com) it you want to talk and not fight.

I would certainly like to know how the internet/information is going to replace manufacturing? Perhaps in regard to one of the bridges we will drive over today. Just a sample please. I skeptical that going into debt to go back to school is much of a solution outside the university cash cow sturcture.